More retailers will now be exempt from hosting a DRS return point, the scheme administrator Exchange for Change has announced.
Exchange for Change, the Deposit Return Scheme (DRS) administrator, has announced that more retailers can now apply for a ‘size-based exemption’ from hosting a DRS return point.
Retailers will also be able to apply for an exemption based on proximity, heritage or listed building restrictions, site access, or lack of access to utilities.
As part of DRS regulations, retailers in urban areas with a retail footprint of less than 100m² are automatically exempted from operating a return point for the scheme, which is set to launch in October 2027.
The new announcement means that retailers with a sales area of between 100m² and 199m² in urban settings and rural retailers with less than 200m² of sales area will also be able to apply for an exemption.
The legislation only applies to the schemes in England, Scotland and Northern Ireland, as Wales withdrew from the process of developing an aligned DRS last year.
Commenting on the changes, Russell Davies, Exchange For Change CEO, said: “Retailers will play a fundamental role in transforming how we increase recycling and reduce litter in every corner of the UK through the DRS.”
“This package of support has been developed following extensive consultation with industry and is intended to help retailers of different sizes make the best choice for their business, whether that’s installing an RVM or applying for an exemption.”
Exchange for Change, which will act as the body providing approval for exemptions, says the extension will be contingent on there being sufficient local provision of return points.
While grocery retailers with a retail space above 200m² can also apply for an exemption based on size, the new criteria keeps the presumption against granting an exemption to those greater than or equal to 200m².
In April, the DRS administrator confirmed £60 million would be made available to support retailers with the costs of installing return points, such as reverse vending machines (RVM).
The funding will be spread over the first three years the scheme is operational and is in addition to the Return Handling Fee (RHF), which covers the costs incurred by retailers when managing returned containers.
The proposed grant level is £6,000 per site and will be structured as three annual payments of £2,000, with the first payment made approximately three months after the scheme goes live in October 2027.
Exchange for Change confirmed the RHF payments will operate on a tiered basis across manual and automatic return points, and will provide for small to large volumes of returned containers.
The fees are:
Manual return points
- 3p per container.
Automatic return points
- Tier 1 – 5p per container, up to 225,000 in-scope items returned annually.
- Tier 2 – 1.3p per container, for annual in-scope returns in excess of 225,000.
The scheme administrator said the RHF will be reviewed early next year, prior to the scheme going live, and will continue to be reviewed annually to take account of new data available from producers and retailers.